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First, for enterprises, traditional cost management methods have significant limitations and are not suitable for their development models; in severe cases, they can hinder better development. Research and analysis reveal that traditional cost management methods primarily focus on the production process of bus products within bus companies. In other words, they treat the product as the focus and core of cost management. Therefore, product research and analysis are necessary. In this analysis, three main components of product cost need to be considered: direct labor, material costs, and manufacturing overhead. These three elements play a crucial role in product cost management analysis. Second, product analysis should not only emphasize direct labor, material costs, and manufacturing overhead, but also the analysis of product quantity. Product quantity should be considered a major factor in cost fluctuations, and the amount of product should be a key focus of cost analysis, aiming to maximize cost-effectiveness in the production process. Research and analysis also show that in traditional cost management, managers often overemphasize cost control in the product production process, neglecting consideration of product research and development, supply and sales, and after-sales maintenance, and overlooking the important role that the internal and external value chains can play in cost management. Then, for most enterprises, if long-term planning is lacking in traditional cost management, their development will be limited. Most traditional cost management focuses primarily on short-term costs, lacking long-term considerations. This cost management model essentially only focuses on the product production process, lacking consideration of cost management from an overall perspective and a long-term sustainable development perspective. Finally, through investigation and analysis of enterprise costs, it is understood that only by changing the traditional cost management model can enterprises find cost advantages, improve their development advantages, and better adapt to the rapid economic development of today, avoiding easy elimination. For enterprises currently facing cost management difficulties, only by transforming traditional cost management concepts, utilizing new cost management methods, and finding a cost management model more suitable for enterprise development can they gain a competitive advantage in the market and avoid being eliminated. Innovative cost management is conducive to improving the competitiveness of bus enterprises, increasing their competitive advantage, and enhancing their sustainable development capabilities. 1.2 Research Significance The current economic environment is complex and volatile, and the pace of product updates is accelerating as people's demands for life increase. The two main objectives of cost management are maintaining sustainable competitive advantage and an irreplaceable core advantage. First, by analyzing data from the internal and external environment of bus manufacturers and their competitors, companies can coordinate and improve their internal management. By aligning with external standards, they can identify cost management methods suitable for their own development, thereby enhancing their competitiveness. New cost management methods should be superior, enabling companies to quickly capture market share in fierce market competition, maximizing corporate value and achieving economic benefits. Second, innovative cost management helps companies better adapt to complex and ever-changing environments, better manage relationships with other stakeholders, and promote multi-faceted and comprehensive development while maintaining a balanced approach.
This paper consists of six chapters, mainly combining research on cost management and product life cycle to demonstrate Yutong Bus's cost management method based on the entire product life cycle. It is hoped that, based on Yutong Bus's cost management method, the bus manufacturing industry can implement cost management strategies that are suitable for enterprise development.
The first part is the introduction. It mainly introduces the research background, significance, research ideas and methods, and research framework, and discusses in detail the necessity of conducting innovative cost management.
This research offers an innovative perspective. Current research, both domestically and internationally, largely focuses on theoretical refinements of existing theories regarding cost management implementation systems, but it lacks a life-cycle analysis. This paper takes Yutong Bus as a case study, proposing an LCC (Limited Cost Control) project tailored to the characteristics of the bus manufacturing industry. It aims to provide practical and reliable assistance to other enterprises in their cost management implementation, expanding their cost management options and offering valuable lessons for practical application, thus promoting better development for other companies.
Cost management refers to the general term for a series of scientific management behaviors in the production and operation process of an enterprise, including cost accounting, cost analysis, cost decision-making, and cost control. Cost management consists of four components: cost planning, cost calculation, cost control, and performance evaluation. Cost control is a crucial and important component of cost management. Cost control is a management behavior in which, based on pre-established cost management objectives for a certain period, the cost control entity, within its authority, adopts a series of preventative and coordinating measures before and during cost incurrence to address factors and conditions affecting costs and ensure the achievement of cost management objectives. Cost control is a dynamic process based on target management. It is primarily used in the process of achieving enterprise cost objectives, and is also a dynamic process control that constantly changes and adjusts as actual costs are incurred. The role of cost control should be present from the beginning to the end of company operations; its positioning should be: pre-event forecasting to set objectives, in-event control to identify deviations, and post-event summary to learn from experience.
Furthermore, promoting the restructuring and upgrading of the enterprise value chain is also a good way for enterprises to fundamentally change their cost structure. Therefore, enterprise cost control should focus on value chain management, and should not be limited to the analysis of production costs or quantifiable data. Instead, cost control should be integrated into every link of the value chain from beginning to end, tracing back to the process of business data formation, and establishing the concept of "big cost". Cost control should be permeated into all value systems such as supply chain, production, sales, logistics control, and even R&D. Similarly, cost control personnel should become advocates and partners of the business.
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